Please show steps 13. You borrowed $20,000 from a local bank at 12% annual rate one...
Please show steps
13. You borrowed $20,000 from a local bank at 12% annual rate one year ago under the condition that you make equal quarterly payments over a five year period. Today, you made the fourth payment. What should be the balance of the loan after this payment?
Homework Answers
First we need to calculate monthly payment
Using PMT function in excel:
Therefore, Monthly payment is $1344.31
Loan Amortization schedule:
Screenshot showing formulas:
Therefore, outstanding balance is $16,886.08
Add Answer to:
Please show steps
13. You borrowed $20,000 from a local bank at 12% annual rate
one...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h Calculate the repavment amounts if the loan ($15 000) will be repaid in two equal installments of $7.500 each, paid at the end of second and fourth years respectively. Interest will be paid each year Click the icon to view the interest and annuity table for discrete compounding when i- 12%% per year . a. The equal end-of-year payments required to pay off the...
Please provide the answer showing all steps. Suppose you borrowed $10,000 at an interest rate of...
Please provide the answer showing all steps.
Suppose you borrowed $10,000 at an interest rate of 12%, compounded monthly over 36 months. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan in 8 equal quarterly payments. What is the amount of this quarterly payment, if the interest rate and compounding frequency remain the same?
please show all steps 2. You have borrowed a loan form bank for $400,000 to finance...
please show all steps
2. You have borrowed a loan form bank for $400,000 to finance a new house. You are required to repay the loan in 360 equal monthly payments starting at the end of month 1. The bank charges an interest rate of 3% APR, compounded monthly. (i) What is the reduction in repayment time if you decide to add $400 to each payment? What is the remaining balance of the loan after 120 payments under (ii) the...
(1) 2. Mrs. Smith has just borrowed $35,000 from a local bank and the loan must...
(1) 2. Mrs. Smith has just borrowed $35,000 from a local bank and the loan must be paid back through 6 equal end-of-year payments over the next 6 years. If the annual intereat rate is 8%, what is the annual payment? nabr. Factor D
please show all work! 8. *Eight years ago you borrowed $200,000 to finance the pur- chase...
please show all work!
8. *Eight years ago you borrowed $200,000 to finance the pur- chase of a $240,000 home. The interest rate on the old mort- gage loan is 6 percent. Payments are being made monthly to amortize the loan over 30 years. You have found another lender who will refinance the current outstanding loan balance at 4 percent with monthly payments for 30 years. The new lender will charge two discount points on the loan. Other refinancing costs...
You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over...
You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the first year.) What will the annual payment be, and what will the interest payment be for the second year?
answer those 4 please Fatima just borrowed 83,364 dollars. She plans to repay this loan by...
answer those 4 please Fatima just borrowed 83,364 dollars. She plans to repay this loan by making a special payment of 29,387 dollars in 7 years and by making regular annual payments of 13,147 dollars per year until the loan is paid off. If the interest rate on the loan is 17.93 percent per year and she makes her first regular annual payment of 13,147 dollars immediately, then how many regular annual payments of 13,147 dollars must Fatima make? Round...
Can you please solve this and show the steps Im using a financial calculator, so please...
Can you please solve this and show the steps
Im using a financial calculator, so please list the inputs.
2. Mr. and Mrs. Spirit purchased a $35,000 house 20 years ago. They took a 30-year mortgage for $30,000 at a 3% annual interest rate. Their bank, the First Amityville National Bank, has recently offered the Spirits two alternatives by which they could prepay their mortgage. The Spirits have just made their 20th annual payment. [A] Under the first alternative, the...
Thompson borrowed $1,200,000 from his bank. The annual rate on his loan is 5% and he...
Thompson borrowed $1,200,000 from his bank. The annual rate on his loan is 5% and he has to repay it with 24 equal annual payments. For his first payment, how much of it is used to reduce his outstanding balance (or principal)? A) $50,000 B) $32,458 C) $26,965 D) $22,371 E) $41,885
Your local bank is offering a new type of retirement savings account. An initial deposit is...
Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opened. This money and any accumulated interest must be left in the account for 29 years. No additional deposits can be made. On the day the account is opened and on each annual anniversary of the initial deposit, the account balance is reviewed and the following terms apply: 1. If the account balance is less than or...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h Calculate the repavment amounts if the loan ($15 000) will be repaid in two equal installments of $7.500 each, paid at the end of second and fourth years respectively. Interest will be paid each year Click the icon to view the interest and annuity table for discrete compounding when i- 12%% per year . a. The equal end-of-year payments required to pay off the...
Please provide the answer showing all steps.
Suppose you borrowed $10,000 at an interest rate of 12%, compounded monthly over 36 months. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan in 8 equal quarterly payments. What is the amount of this quarterly payment, if the interest rate and compounding frequency remain the same?
please show all steps
2. You have borrowed a loan form bank for $400,000 to finance a new house. You are required to repay the loan in 360 equal monthly payments starting at the end of month 1. The bank charges an interest rate of 3% APR, compounded monthly. (i) What is the reduction in repayment time if you decide to add $400 to each payment? What is the remaining balance of the loan after 120 payments under (ii) the...
(1) 2. Mrs. Smith has just borrowed $35,000 from a local bank and the loan must be paid back through 6 equal end-of-year payments over the next 6 years. If the annual intereat rate is 8%, what is the annual payment? nabr. Factor D
please show all work!
8. *Eight years ago you borrowed $200,000 to finance the pur- chase of a $240,000 home. The interest rate on the old mort- gage loan is 6 percent. Payments are being made monthly to amortize the loan over 30 years. You have found another lender who will refinance the current outstanding loan balance at 4 percent with monthly payments for 30 years. The new lender will charge two discount points on the loan. Other refinancing costs...
You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the first year.) What will the annual payment be, and what will the interest payment be for the second year?
Can you please solve this and show the steps
Im using a financial calculator, so please list the inputs.
2. Mr. and Mrs. Spirit purchased a $35,000 house 20 years ago. They took a 30-year mortgage for $30,000 at a 3% annual interest rate. Their bank, the First Amityville National Bank, has recently offered the Spirits two alternatives by which they could prepay their mortgage. The Spirits have just made their 20th annual payment. [A] Under the first alternative, the...
Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opened. This money and any accumulated interest must be left in the account for 29 years. No additional deposits can be made. On the day the account is opened and on each annual anniversary of the initial deposit, the account balance is reviewed and the following terms apply: 1. If the account balance is less than or...
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